When the facts change, I change my mind. What do you do? -- John Maynard Keynes

Wednesday, January 22, 2014

The Bad Way to Reduce Unemployment, Labor Participation Rate, Giving Up

There's a good way to reduce unemployment -- jobs, and a bad way -- people giving up looking for work. If you are not actively "looking for work" you are not counted as "unemployed." That is how Obama has mostly reduced the unemployment rate since he became President -- the bad way --

What Caused the Crash In the Labor Participation Rate? Washington's Blog:  "Most disturbingly, the Post notes that the main factor (in decrease of the unemployment rate) may be workers simply giving up: The number of Americans working or actively seeking work has actually fallen faster than demographers had predicted" ... "And here’s another clue that this isn’t just a demographic story: The participation rate for workers between ages 25 and 54 fell sharply during the recession and still hasn’t recovered. Obviously, retirements can’t explain this"... In other words, the crash in labor force participation rate is a very significant indication that all is not well with the economy. Unfortunately – instead of helping to reduce unemployment – bad government policy has made it much worse. And see here and here."


The Big Picture

Financial Crisis - The Telegraph

JohnTheCrowd.com | The Sailing Website

Craig Newmark - craigconnects